Whether or not pacemakers, insulin pumps or synthetic hip joints, Canadians might face a spike in well being prices if U.S. President Donald Trump imposes a 25 per cent tariff on imports from Canada, set to take impact Saturday.
With the looming tariff, Medtech Canada, a nationwide affiliation representing 120 medical expertise firms, warned the price of well being applied sciences might rise considerably — in each international locations — if tariffs are applied.
“Medtech Canada has been advocating on behalf of the medical technology industry on this important matter, and our members are planning for and taking this tariff threat very seriously,” mentioned Gerry Frenette, vp of Medtech Canada.
“We’re working with our partners in government and other key stakeholders to help ensure that patients and clinicians have continued access to all the necessary medical technologies they need,” he informed International Information in a Friday e-mail.
Medical gear has sometimes been exempt from tariffs between Canada and the U.S., largely resulting from free commerce agreements just like the Canada-United States-Mexico Settlement (CUSMA).
Nonetheless, Trump’s proposed tariffs might mark a big shift, probably making the prices of medical gear — comparable to MRI machines, ventilators and wheelchairs — rather more costly.
In a letter to Canada’s Finance Minister Dominic LeBlanc on Jan. 21, Medtech warned the potential tariffs on Canadian exports, together with retaliatory tariffs imposed by Canada on the U.S., would have an “immense” affect on the health-care system, burdening sufferers considerably.
“The pandemic and post-pandemic supply chain challenges highlighted the immense importance of our sector. In recent years, there has been significant growth in the manufacturing of medical technologies in Canada, but many of these manufacturers are reliant on U.S.-based suppliers for raw materials and intermediary products,” the letter acknowledged.
Canada’s largest buying and selling associate for medical units is america.
Get weekly well being information
Obtain the most recent medical information and well being data delivered to you each Sunday.
In 2022, medical machine imports from the U.S. have been valued at C$5.2 billion, representing 38 per cent of Canada’s complete medical machine imports, in accordance with Canada’s trade sector intelligence.
And the identical yr, Canada’s medical machine exports to the U.S. have been C$3.08 billion, or 74 per cent of Canada’s complete medical machine exports.
The letter emphasised that because of the vital commerce relationship, “the medical technology sector should not be targeted for retaliatory tariffs against the U.S., as the impact on our health-care system and patients would be too immense.”
The letter additionally acknowledged that Canadian applied sciences play a key position in supporting the U.S. health-care system and its residents. U.S. tariffs on these merchandise would drive up manufacturing prices, which might finally make health-care much less inexpensive for suppliers and sufferers in each international locations.
“Furthermore, U.S. tariffs diminish the ability of Canadian medical technology companies to compete in the U.S. market, which, as previously mentioned, is our largest export destination,” the letter mentioned.
“The integrated nature of the North American supply chain of medical technologies means that tariffs from both sides of the border will reduce market access and impact the affordability and accessibility of healthcare in both Canada and the U.S.,” it concluded.
